Why innovation is necessary for Businesses to Thrive

by | Feb 24, 2020

Innovation is more like an art than a science. It has no metric for success and there’s not much quantitative work published regarding the topic. But across all surveys and research, one thing is constant: Innovation is paramount to growth.

According to a research done by SLOAN MIT review in 2017, innovative companies are more profitable. And when the corporate culture encourages innovation, the results are not less than magical.

Innovation is not an entirely new concept. The biggest shifts we’ve seen in this millennium have something to do with continuous innovations. As humans, we constantly aim to make things better and to make life a little easier and more bearable. Without innovation, we won’t be able to evolve.

What is Innovation and why is it important?

If you google Innovation, the first result will tell you that it’s the process of turning an idea or invention into something that gives value for people to pay for. The keyword is already there: Value.

The truth is, innovation is not always about coming up with something new. Being innovative can also mean knowing when to get rid of the old and traditional in order to give better value.

Picture this: Only 10.4% of the Fortune 500 companies in the 1950s are still in the Fortune 500 list in 2019. More than 89% have gone bankrupt or were acquired by another firm. Companies like American Motors, Zenith Electronics, and Detroit Steel were replaced by companies like Google, Amazon, and Netflix.

Innovation is important because without it, nothing will change. From a business’ perspective, innovation is one of the most important ingredients to survival. It’s the lifeline of a business. It’s the outcome of our creative process and our constant pursuit of a better solution to our everyday problems. It’s how we give better value that people are willing to pay for.

Innovation vs. Transformation

Innovation and transformation are very different concepts. While innovation is the process of turning an idea into something that gives value, transformation is the ultimate paradigm shift. One of the best examples is how today’s computers – which sprouts from multiple innovations – ended the era of the typewriter and transformed the way we type documents.

These two concepts are often confused together because they cannot exist without the other. In order for transformation to happen, innovation is necessary. In a business sense, if you want transformation to happen – whether internally or externally – you need to constantly innovate.

The Next Step

“But we’ve always done it this way.”

How many times have you heard someone say this? One way of killing innovation is by sticking to old habits. In order to inspire transformation, business leaders need to stay current, be open to new ideas and collaboration, and more importantly, to continue learning.

In our Innovation Labs, we don’t actually follow the traditional innovation training programs. While it’s true that all changes start with a lone nut, we also believe that the best learning happens in a collaborative setting. By building on each other’s ideas.

We build our programs entirely around customer needs, resulting in a comprehensive & proven transformational program that helps organisations to become truly innovative.

If you’re ready to take the next step to transform your business, make sure to send the person who has that but-we’ve-always-done-it-this-way mentality to our Lab.

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